Overview
The 8th Environment Action Programme aims, among other objectives, to phase out environmentally harmful subsidies1 (EHS).
There are three types of EHS:-
- Fossil fuel subsidies
- Other energy-related subsidies that are harmful to the environment
- Non-energy subsidies that are harmful to the environment
Fossil fuel subsidies and other energy-related subsidies are reported under the Regulation on the Governance of the Energy Union. The data is published in the EU's Annual Report on Energy Subsidies.
New methodology
The Commission and Member State experts are developing a methodology to identify other non-energy EHS. This will enable Member States to map their EHS and allow the Commission to report on the level and type of these subsidies, as well as progress made in phasing them out. The first reporting exercise will take place in 2025, alongside the collection of energy subsidies data.
This methodology is also relevant for reporting under the Kunming-Montreal Global Biodiversity Framework (GBF) agreed at the 15th Conference of the Parties to the Convention for Biological Diversity (CBD COP15). It includes Target 18 to eliminate or reform incentives harmful to biodiversity by 2030.
Since any environmentally harmful subsidy also harms biodiversity, this initiative will contribute to the GBF's goals. For example, fossil fuel subsidies can impact biodiversity.
More information
- A study carried out in 2022 by VVA, RPA Europe, Bio Innovation Service, Metroeconomica and Vrije Universiteit Amsterdam (plus annexes). Note that this study and the examples it gives were finalised a few years ago, and so its findings do not necessarily match the methodology currently being developed.
Many international organisations have also produced guidance material for the identification and assessment of EHS. See below.
